COLUMBUS — The Ohio Senate on Thursday passed a bill to allow Hamilton County and Cincinnati to increase hotel taxes to pay for expansion and renovation of the Albert B. Sabin Cincinnati Convention Center.

        The taxes are the cornerstone of a 30-year financing plan to spend $198 million to attract more conventions and visitors to Greater Cincinnati.

        Under the bill, sent to the governor for his signature, Hamilton County could raise its hotel tax from 3 percent to 6.5 percent. The countywide tax increase is expected to bring in about $6 million more a year.

        Cincinnati could raise its hotel tax from 3 percent to 4 percent. The city doubled its tax on April 1 from 1.5 percent to 3 percent, expecting to generate $1.3 million more a year. The city has not indicated it would raise the tax to 4 percent.

        “I'm grateful to the General Assembly for passing it,” Cincinnati Mayor Charlie Luken said. “It moves the expansion of the center forward. This is an important step.”

        But officials still need to find a workable financing plan.

        The deal has changed significantly since Mr. Luken and Hamilton County Commissioner Todd Portune announced a financing plan in January. Under that plan, the county hotel tax would have jumped from 3 percent to 7.5 percent. Suburban hotel operators and state representatives complained they'd lose business with the higher rates.

        Another major change was the naming rights commitment from Delta Air Lines, which had originally promised $30 million but now wants to lower that amount.

        Mr. Luken said he expects to hear from Delta on naming rights in 30 days.

        Mr. Portune said the bill's passage is a “positive step.”

        Northern Hamilton County suburbs have been concerned the tax increase would send visitors to neighboring counties with lower tax rates.

        To bolster support for the measure, Mr. Portune and Sharonville Mayor Virgil Lovitt suggested continuing debt service payments from the convention center's 1984 expansion for an additional 30 years. That idea has not been endorsed by Cincinnati City Council or county commissioners.

        That money would be used to lower the tax rate in suburban communities and to help market a northern convention and visitors bureau.

        Mr. Luken opposes the creation of a northern Hamilton County bureau, a goal of suburban officials.

        “We are not done with the financing plan,” Mr. Luken said. “My only hope is that nothing will be done to create a suburban convention and visitors bureau or take away money from the expansion.”

       Dan Klepal contributed to this report.
       

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